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Oil Prices Retreat, but Still Close to 3Month High

Oil prices hover near three-month highs on Friday and may show weekly growth for the third consecutive week amid easing tensions around trade relations between the U.S. and China, which overshadowed the growth prospects of the global economy.

Brent crude oil futures grew by 0.06 percent, to $66,58 per barrel, whereas U.S. WTI futures with delivery in February eased by 0.10 percent, to $61,12 per barrel at 8.37 GMT. 

Markets were assessing the trade optimism, which was buoyed by comments of U.S. Treasury Secretary Stephen Mnuchin, who mentioned that the “first phase” of a trade deal with China will be concluded in early January 2020.

Progress in a protracted trade dispute between the United States and China, the two world’s largest oil consumers, reinforced expectations for an increase in demand for this type of commodity next year.

Photo: Flickr

Recall, earlier this week, JP Morgan and Goldman Sachs raised their forecast for oil prices for 2020 amid a decline in production led by OPEC and improved outlook for world trade.

In addition, lower U.S. oil inventories broadly supported the oil prices.